# Red Cat Holdings Inc. (RCAT) fundamentals

Data as of 2026-09-08. NASDAQ, United States. Sector: Technology / Technology Hardware, Storage & Peripherals. Price $8.37, market value $1.3 billion.

## Valuation
- **P/E (trailing): n/a** (negative earnings). Red Cat Holdings Inc. reported negative earnings over the last twelve months, so the P/E is not meaningful; use price-to-sales, EV/EBITDA and free-cash-flow yield instead.
- **Price / sales: 17.4×**. Each dollar of revenue is priced at 17.4×, a level that requires very high margins or very fast growth to justify.
- **Price / book: 2.7×**. The shares trade at 2.7× book value; book value is a meaningful part of the valuation.
- **Free-cash-flow yield: -12.3%** (5-yr avg -32.7%). Free cash flow is negative: the business is consuming cash, which is normal for heavy investment phases but a warning otherwise.

## Profitability
- **Gross margin: 9.5%**. Red Cat Holdings Inc. keeps 9.5% of revenue after the direct cost of what it sells, a thin margin typical of retail, distribution and commodity businesses.
- **Operating margin: -145.9%**. Operating margin is negative: the business loses money before interest and tax.
- **Net margin: -177.0%**. The company reported a net loss over the last twelve months.
- **Return on equity: -29.3%**. Return on equity is negative because earnings are negative.
- **Return on invested capital: -34.5%**. Return on all capital, debt included, is -34.5%: close to or below the cost of capital, so growth may not create value.
- **Return on assets: -35.6%**. Each dollar of assets produces -35.6% of profit.

## Growth
- **Revenue growth (1 yr): 128.4%** (3-yr 85.0%/yr, 5-yr 151.6%/yr). Revenue grew 128.4% over the last year, against 151.6% a year compounded over five years.
- **EPS growth (1 yr): -82.5%**. Earnings per share fell 82.5%, slower than revenue, so margins compressed.

## Financial health
- **Debt to equity: 0.00**. Debt is 0.00 times equity: a conservative balance sheet.
- **Current ratio: 15.29** (quick 15.29). Current assets cover the next year's liabilities 15.29 times.
- **Altman Z-score: 29.08**. A Z-score of 29.08 places the company in the safe zone for bankruptcy risk.
- **Piotroski F-score: 3/9**. 3 of 9 checks pass: weak or deteriorating financials.

## Dividends
- **Dividend: none**. Red Cat Holdings Inc. does not currently pay a dividend.

## Analyst view
- **Analyst consensus: strong_buy** (8 analysts). 8 analysts cover Red Cat Holdings Inc.; the consensus is strong_buy, with an average price target of $16.75 (+100% from the current price). Analyst opinion is shown for context; it is not part of the Fundamental Score.

## Price and momentum
- **Total return (1 yr): -1.6%** (YTD 5.5%, 3-mo -34.0%). The shares are down 1.6% over twelve months including dividends.
- **From 52-week high: -55.4%** (45.1% above the low). Trading 55% below its 52-week high, deep in a drawdown.
- **200-day average: below**. The price sits below its 200-day moving average, the usual definition of a downtrend.
- **RSI (14-day): 43**. An RSI of 43 is neutral.
- **Beta (1 yr): 3.65** (volatility 114%). Beta of 3.65 against the S&P 500: the shares move much more than the market.

Live score and charts: https://foliofundamentals.com/analyzer?s=RCAT · Page: https://foliofundamentals.com/stocks/rcat

Not investment advice.